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Statistics

The spreadsheet : is it an asset in an accountants balance sheet?

Author

Heng, Stefanie Gek Hiong

Ng, Jane Sook Yin

Sia, Valerie Puay Khim

Date of Issue

1994

School

College of Business (Nanyang Business School)

Abstract

This project was undertaken with the following three objectives in mind:
(1) to confirm authors' claims that Lotus is the most popular spreadsheet,
(2) to confirm the extent to which spreadsheets are used in accounting work, and
(3) to discover whether the usage of spreadsheet in accounting contributes to work
efficiency.
The methodology included a questionnaire survey targeted at local SMEs in both the service
and manufacturing industries in Singapore.
Survey findings indicate that the spreadsheet is used extensively to prepare accounting work
(such as consolidation of financial statements) and that its usage has contributed to work
efficiency. 70% of the survey respondents reported productivity increases of between 20% to
60% in terms of time saved.
However, the survey findings also disclosed that Lotus is the second most popular
spreadsheet, after Excel. This is in line with a Straits Times article (Nov 23, 93) reporting
Lotus as the number 2 in world-wide market share.
Common criticisms of Lotus included weak graphical and database facilities. It is viewed by
users as more of a worksheet tool rather than as a 3-in-1 package. In view of the latest software market trend towards "suites", where weaknesses in one
program IS compensated for by the strength of another program in the same suite,
technological improvements alone may not be an adequate solution for Lotus.
Also, as competition gets tougher, business strategy plays an important role. Hence, plans to
increase/maintain market share should perhaps take into account strategic factors like:
-building market share quickly,
-enticing upgraders to switch, and
-preventing existing customers from switching.
To cap it all, this project has confirmed the role spreadsheets play in contributing to work
performances within the accounting arena and dispelled the "myth" (belief) that Lotus is the
leading spreadsheet.